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 Welcome
to Step 2, where the evolution of modern finance is discussed.
Peter L. Bernstein provides the inspiration for this step
in his two books, Capital Ideas, The Improbable Origins
of Modern Wall Street and Against the Gods, The Remarkable
Story of Risk. Both are recommended as supplemental sources
to this 12-Step Program.
A review of the collective research of
these Nobel Prize recipients and other financial academics
shows a comparison between what the average active investor
understands about the risks and rewards of the global equities
market and the academics’ three hundred and forty-five
years of unbiased, rigorous, and empirical research. When
active investors can accept the fact that there is a vast
difference, then they are on the road to recovery. Although
this step is titled Nobel Laureates, numerous academics
who have researched the stock market but did not get a
Nobel Prize will also be discussed. These researchers,
including the Nobel Laureates, continue to build and improve
on the research
of others.
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Education
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